Data shows that mobile home values are rising even faster than traditional homes. Nonetheless, buying a mobile home is not exactly the same as buying a traditional home. From the different types of mobile homes to the hidden costs to the financing rules, every aspect of the process is unique. Here's the key information you need to know.

Types of Mobile Homes

Mobile homes are typically categorized as single-wide and double-wide units. Some companies also offer new home options in triple-wide units.

Single-wide mobile homes: these homes have a narrower structure with a compact interior layout, and rooms are usually connected to each other rather than separated by hallways.

Double-wide mobile homes: these homes consist of two single-wide units joined together and have an appearance that more closely resembles a traditional wood-frame single-family home.

(Getty Images)

When purchasing a new home, you will also need to consider land options - whether to buy or lease.

Rural: Lenders often offer “land-home packages” that tie the land to the purchase of the home, with one monthly mortgage payment.

Urban areas: Many mobile home owners choose to lease lots in mobile home parks.

Costs and Financing of Buying a Mobile Home

Hidden Costs

The overall cost of a mobile home is typically lower than a traditional home, but there are still some additional costs to consider, such as land lease fees, insurance costs and potential depreciation impacts.

For loans, financing rules differ significantly from those for traditional homes:

Single-wide mobile homes: financing is difficult to obtain through large private lenders, but can be accomplished through mobile home sales companies or credit unions.

Double-wide mobile homes: Loan terms are typically 15 years and must meet specific conditions, such as foundation inspections and “original home” requirements, meaning that the home cannot be disassembled and rebuilt.

In addition, government-supported programs (such as the USDA Rural Development Program) may offer more flexible loan terms, even allowing for zero down payment, but interest rates are usually higher than traditional residential loans.

 A mobile home for sale near Orlando, FL.(Realtor.com)

Advantages and Limitations of Mobile Homes

Lower Cost: Mobile homes are less expensive to acquire and may have as little as 5% or less down payment.

Affordability: Homebuyers who can't afford a lot have the option of leasing land in a park.

Flexibility: Many of the new mobile homes are well-designed and offer energy-efficient and comfortable living spaces.

Depreciation: Mobile homes hold their value less well than traditional homes, but improvements in manufacturing standards after 1976 have improved.

Higher Interest Rates: Interest rates on loans can be higher than traditional homes, as lenders view them as a higher risk.

Before buying a mobile home, be sure to:

Understand the hidden costs and depreciation issues involved.

Ensure the home meets relevant standards for housing and urban development.

Purchase mobile home insurance for the life of the loan to cover you in the event of a natural disaster or accidental loss.